The International Monetary Fund (IMF) on Monday called on Nigeria and other emerging economies to deepen governance diagnostics and curb illicit financial flows within their respective countries, in order to improve resilience and restore public trust in government institutions.
IMF Managing Director Kristalina Georgieva who made the call during a Civil Society Town Hall at the ongoing IMF World Bank Annual Meetings in Washington, noted that while the global economy has shown remarkable resilience despite a series of shocks, many developing countries remain vulnerable due to weak governance systems, rising debt, and limited fiscal transparency.
She stressed that effective governance diagnostics and anti–anti-money-laundering frameworks have become indispensable for sustaining growth and attracting investment, especially in countries struggling with high public debt and leakages in public finance.
“Illicit financial flows, what we call dirty money, undermine stability and public trust. Five to ten years ago, this was underestimated; today, it is central to our analysis and policy advice.
“We now integrate anti-money-laundering and governance diagnostics into our annual Article IV reviews and lending programmes, so countries can identify and fix institutional weaknesses before they become crises.”
The IMF chief disclosed that the Fund has developed a new Anti–Money-Laundering and Combating the Financing of Terrorism (AML/CFT) Strategy, which would be applied more broadly across member countries.
The initiative, she explained, was designed to trace illicit flows, strengthen oversight in financial institutions, and reinforce debt transparency.
Georgieva also urged African governments to work more closely with civil society to ensure transparency and accountability in public finance management.
“The governance diagnostic tool is not an audit; it is a preventive measure. We encourage governments to collaborate with civil society organisations that often know the system’s weaknesses best. Working together makes our efforts more credible and effective,” she added.
Furthermore, she noted that while Nigeria and some other low-income countries have seen marginal declines in debt ratios, the reduction was largely due to limited access to finance rather than improved debt sustainability. This, she said, underlines the urgency for stronger institutional frameworks and credible debt-management strategies.
According to her, inclusive governance was becoming just as critical as macroeconomic policy in restoring stability.
“We are seeing young people across countries take to the streets because they have lost faith in institutions. Governments must deliver transparent, people-focused policies or risk losing social cohesion,” she added.
According to her, the IMF would continue to work with the World Bank through the Global Sovereign Debt Roundtable and the G20 Common Framework to establish clearer rules for debt restructuring and ensure that both creditors and debtors agree on sustainable pathways to recovery.
“Countries can only grow out of debt,” Georgieva said, reaffirming the Fund’s commitment to supporting growth, entrepreneurship, and job creation, particularly in Africa’s young economies.
Eromosele Abiodun and Nume Ekeghe
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